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Hitachi Sustainability Report 2017
Activities Performance DataIntroductionContents Management Approach
Environment
Environmental Management
Environmental Management FrameworkOur global environmental management system supports envi-
ronmental decision making and implementation at Hitachi, Ltd.
and 864 consolidated subsidiaries (a total of 865 companies).
Enhancing Environmental Management on an Ongoing Basis
The CSR and Environmental Strategy Division is responsible
for developing Group-wide environmental policies. Important
items related to environmental initiatives are deliberated by the
Executive Sustainability Committee, established in 2017; it is
chaired by the president of Hitachi, Ltd., and its members
include top Hitachi executives. The environmental strategy
officers from business units and major Group companies ensure
that the Hitachi Group Environmental Action Plan approved by
the executive officer in charge of environmental concerns is
implemented throughout the Group. Eco-Management
Meetings, reorganized in 2017, promote long-term targets, set
goals for the Environmental Action Plan, develop ways to
achieve them, and endorse initiatives to be carried out by the
Group as a whole. Outside Japan, we assign regional specialists
to report on the progress of the Environmental Action Plan and
share information on the latest environmental regulations while
exchanging views on local environmental issues during meetings
held once or twice a year in each region.
Building Environmental Management Systems
We have established environmental management criteria to
ensure efficient management of each business site’s environ-
mental load. There are approximately 200 business sites that
meet these criteria, and these, together with the CSR and
Environmental Strategy Division, have developed and
implemented the Hitachi Group Environmental Promotion
Organization EMS (environmental management system) to
promote the consistent implementation of environmental
policies. At the same time, every business site meeting the
aforementioned criteria for environmental management continues
to maintain ISO 14001 certification. Certification is also being
pursued at business sites that do not yet meet the criteria. In
conjunction with the issuance of ISO 14001: 2015, business
sites that acquired certification prior to this version have been
working to align their environmental management systems with
the 2015 update. As of March 2017, approximately 25% of
business sites have completed this task. The transition will be
steadily promoted with an eye to meeting the September
2018 deadline.
Status of ISO 14001 Certifications (as of March 31, 2017)
Total
Number of Certified Sites*1 250
*1 Including companies with more than one certified business site.
Americas16
Europe12 China
55
Rest of Asia
51
Japan116
List of ISO 14001-Certified Sites
Hitachi’s Approach
To lay the groundwork for the promotion of
environmental management on an ongoing basis and
thereby achieve its Environmental Vision, the Hitachi
Group needs to establish and continuously improve
systems to reduce the environmental burden of its
business operations.
Based on a number of certifications and guidelines,
including ISO 14001, we have developed Group-wide
environmental management systems that allow us to
gauge the environmental burden of our business
activities and steadily implement a PDCA cycle to
reduce that burden. In order to reduce the environ-
mental burden throughout the value chain, we apply
Environmentally Conscious Design Assessments during
the design and development stages of the products
and solutions we offer. We also have in place a global
environmental management framework, under which
we evaluate our environmental activities and keep
close track of our environmental performance.
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Activities Performance DataIntroductionContents Management Approach
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Monitoring Environmental Performance Data
For effective environmental management, we collect data on
the environmental performance of business operations using
the Environmental Data Aggregation System.
The system was upgraded in fiscal 2016, and it now supports
multiple languages and is able to directly register environmental
load data from some 1,200 Hitachi business sites worldwide on
items such as energy use, CO2 emissions, and waste generation,
as well as whether it falls under relevant environmental laws and
regulations. The collected data will be aggregated and analyzed
at the CSR and Environmental Strategy Division where we will
identify environmental management issues, share instructive
examples within the Group, and improve environmental practices.
At the approximately 200 business sites that meet Hitachi’s
environmental management criteria, we collect and analyze
data on such key items as energy, waste materials, and water
on a monthly and quarterly basis so that the environmental
management levels can be further increased.
Environmental Activity Evaluation System
We use our own evaluation system, GREEN 21, to improve the
level and quality of our environmental activities. It divides the
targets of the Environmental Action Plan into six categories
and evaluates achievements. A perfect score for any category
is 100 green points (GPs), and each item is assessed on a
scale from 1 to 5.
Starting in fiscal 2016, activities reflecting an eagerness to
stimulate environmental action have been taken into consider-
ation as an additional scoring criterion. Our fiscal 2016 compre-
hensive evaluation was 265 GPs against the target of 240 GPs.
For fiscal 2017, we will continue to promote environmental
activities to achieve the target of 360 GPs.
Key Indicators
Green Point (GP) Average: FY 2016 Targets and Results
FY 2016 target: 240 GPs FY 2016 result: 265 GPs
Environmentally Conscious Design AssessmentsWe conduct Environmentally Conscious Design Assessments
for all products and services involving a design process to
ensure environmentally conscious design and development.
Thirty environment-related areas are assessed for their impact
on climate change, resource depletion, and environmental
pollution (ecosystem degradation) at each stage of the product
life cycle with a view to reducing the environmental burden. To
meet the IEC 62430*1 criteria for environmentally conscious
design, in addition to implementing these assessments, we are
advancing environmentally conscious design and development
50
0
100
Management55 GPs
Resource Recycling and Management of Chemical Substances51 GPs
Products and Services41 GPs
Collaboration with Stakeholders41 GPs
Global Warming Prevention38 GPs
Ecosystem Preservation39 GPs
by integrating this process into our existing management
system, such as by keeping abreast of environmental regulations
and ascertaining the environment-related needs of our stake-
holders. We conduct life cycle assessments (LCAs) focusing on
our main, priority products to quantitatively evaluate their burden
on the global environment in such areas as the consumption of
mineral resources, fossil fuels, and water resources, as well as
their impact on global warming and air pollution. The results of
such LCAs are disclosed to our stakeholders and utilized in
improving the design of next-generation products.
*1 The standard developed by the International Electrotechnical Commission concerning
environmentally conscious design for electrical and electronic products.
Creating Eco-Factories & Offices SelectTo reduce the environmental burden of our business activities,
since fiscal 2011 the CSR and Environmental Strategy Division
has implemented an Eco-Factories & Offices Select certification
program for business sites that promote activities demonstrating
a high level of environmental consciousness and produce
notable results in that area. This helps raise the environmental
awareness of employees and promote environmentally conscious
business activities.
Based on certification criteria that were developed for our
manufacturing (factory) and nonmanufacturing (office) divisions
globally, we certify existing factories that actively engage in
improvements to achieve efficient production and new offices
that have been environmentally designed from the start. Superior
policies from certified factories and offices are shared with the
entire Group, with other locations encouraged to implement
them as well. To maintain and raise the level of environmental
awareness through Eco-Factories & Offices Select, certified
factories and offices are re-evaluated every fiscal year to confirm
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Activities Performance DataIntroductionContents Management Approach
Environment
that their performance continues to meet requirements. In fiscal
2016, 9 facilities were newly certified and 67 facilities had their
certifications renewed. The total number of certified factories
and offices was 76.
Eco-Factories & Offices Select Certification Criteria
Eco-Factories & Offices
Facilities that have met their targets for each fiscal year under the GREEN 21 evaluation system
A factory or office that has met at least one of the following criteria
Eco-Factory Select
Energy efficiency
Renewable energy use
High-efficiency lighting
Recycling of waste and other resources
Efficient water recycling
Reductions in chemical substance emissions
Eco-Office Select
High-efficiency lighting
Renewable energy use
Energy savings
Improved office building environmental performance
Eco-Factories & Offices
Eco-Factories & Offices Select
Factories and Offices
Energy Savings in Eco-Factories & Offices Energy Savings with an Efficient Manufacturing Line Using
JCM*1 (Hitachi Chemical Co., Ltd.)
The Hitachi Chemical Group’s Hitachi Chemical Energy
Technology (Vietnam) manufactures lead-acid batteries in
Vietnam, and has constructed a new, efficient manufacturing line
to reduce energy consumption. In conventional manufacturing
lines, electric power consumption is particularly high during the
formation and charging processes. By integrating these proc-
esses to reduce the amount of electric power consumed and
by eliminating the LPG used in washing and drying processes,
CO2 originating from fossil fuels was reduced about 60% on
the new line. In this way CO2 emissions from the plant were
reduced by 2,880 t-CO2 compared to fiscal 2015. The washing
process could also be eliminated from the new line, cutting
down on the amount of water used. Construction of the new
line was done using the Joint Crediting Mechanism (JCM).
*1 Joint Crediting Mechanism (JCM): A system of cooperating with developing nations in
efforts to reduce greenhouse gases, after which the benefits of the reduction are shared
between the two countries.
The newly constructed manufacturing line.
Energy-Saving Activities Using IoT with a Shop Floor
Perspective (Hitachi Construction Machinery Co., Ltd.)
Hitachi Construction Machinery uses a network of Japanese
and international affiliates centered on four main plants in
Japan to produce construction machinery and its principal
components. Together with energy reductions during use as
these products switch to electric or hybrid power, efforts
throughout the network are also being made to reduce energy
consumption in the manufacturing stage.
The entire Hitachi Construction Machinery Group continues
to implement energy-saving measures and promote greater
efficiency in plant and office lighting and air-conditioning. Several
locations have also introduced IoT technology to further reduce
energy consumption and raise productivity. Specifically, by
adopting the Energy and Equipment Management Service, a
key solution concept under Hitachi’s Lumada IoT platform to
comprehensively control energy data and equipment across
multiple business facilities, they are able to efficiently analyze
and manage electric power data gathered from equipment at
each plant. Energy usage by the machine tools, robots, and
other production equipment used in plants is finely controlled,
reducing standby power and increasing energy efficiency.
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With these efforts the energy use per unit has been
decreased 32% compared with fiscal 2010 at the company’s
main plants in Ibaraki Prefecture, contributing to a significant
reduction in electric power costs.
Hitachi Construction Machinery Co., Ltd.
Lumada IoT Platform
Energy and Equipment Management Service
Tsuchiura Works East Building and the Hitachi UH03 hydraulic excavator, which is included in
the list of Japan’s Mechanical Engineering Heritage.
to Hitachi Group training, individual companies and units provide
education tailored to their own business area. For general
education, we offer Internet-based e-learning courses in
Japanese, English, and Chinese to familiarize all employees
with our Environmental Vision and long-term environmental
targets called Hitachi Environmental Innovation 2050. To date,
142,012 employees worldwide have taken this course.
Environmental Education and Training System
Target Introductory Beginning Intermediate Advanced
All employees
Introductory training for new employees
Online e-learning: Eco-Mind education (General topics: Global environmental
issues, environmental law, etc.)
Online e-learning: Eco-Mind education (Hitachi Group topics: Environmental
policy, Environmental Action Plan, etc.)
Working-level
employees
Basic environmental management course for working-level employees
(management of waste; air/water quality; hazardous materials; development &
operation of management systems; etc.)
Education for Eco-Factories
Eco-Product development training
Risk communicator training
Internal environmental
auditors
Brush-up training on ISO 14001
ISO 14001 auditor certification
training
ISO 14001 senior auditor certification
training
Environmental Education Initiatives
Promoting Environmental EducationPromoting greater environmental awareness and understanding
among our employees is essential to Hitachi’s effort to energize
its environmental activities. Toward that end, we are advancing
our environmental education. Hitachi Group training is being
implemented for all Group employees, from newly hired workers
to working-level employees. They are provided with basic envi-
ronmental education, as well as courses on environmental risks
and compliance with environment-related laws and regulations.
Actions and AchievementsAt Hitachi, we provide basic environmental management
courses for employees working in air, water, and waste
management, as well as training in recent amendments to laws
and operational procedures. We are also strengthening similar
courses designed for working-level employees who work
outside of Japan. Accordingly, in fiscal 2016, 21 people from 9
companies took part in a training program that was hosted in
Ayutthaya, Thailand, in February 2017, and a program in Amoy,
China, in March 2017 attracted 57 people from 37 companies.
In order to complete our response to ISO 14001: 2015
within the three-year transition period, explanatory meetings for
the internal auditors of the Hitachi Group were held to deepen
understanding of the revisions. In fiscal 2016, the explanatory
meetings held in Japan (in June and August) were attended by
99 internal auditors from 43 Group companies, while 74 internal
auditors from 49 Group companies attended the meeting in
Nanjing, China (in September). Furthermore, 16 internal auditors
from 15 Group companies attended the US meeting in Dallas (in
June) to deepen their understanding of the revision. In addition G
ener
al e
duca
tion
Spe
cial
ized
edu
catio
n
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Activities Performance DataIntroductionContents Management Approach
Environment
Next StepsFrom fiscal 2017, we will continue with environmental education
training across our global operations to enhance the knowledge
and skills of staff in charge of factory management. Since the
general e-learning course is a three-year program, we will
encourage more employees to take the course with the aim of
familiarizing them with our Environmental Vision and Hitachi
Environmental Innovation 2050.
Environmental Compliance
Environmental Compliance ResponseHitachi considers the environmental burden of all business
activities and sets voluntary management criteria that are more
stringent than regulatory requirements. We regularly monitor
water quality, noise levels, and other conditions at each business
site and work to minimize environmental risks. In addition, we
take every possible step to prevent problems or their recurrence
and to strengthen controls by sharing information on environmental
laws and regulations, as well as examples of infringements,
throughout the Group.
Actions and AchievementsIn fiscal 2016, we received a worldwide total of 12 notices
concerning water quality, air quality, or waste matter and
complaints about noise or odors. Of these, 6 were complaints
from nearby residents regarding noise, foul odor, or construc-
tion dust from our business sites. This is slightly higher than
the 4 complaints we received in fiscal 2015, but they were all
promptly addressed.
Hitachi continues to implement enhanced environmental
management in order to prevent repeated or new contamination
occurrences.
Global Notices and Complaints
Water quality
Air quality
Waste matter
ComplaintsOther
(petition, notification, etc.)
Fiscal 2016 cases 1 2 1 6 2
As part of our measures to address the pollution of soil
and groundwater, we are examining the soil and water for any
contamination at business sites where hazardous chemical
substances have been used. In case contamination is found, we
conduct cleaning and monitoring activities until decontamination
has been completed.
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Environmental Load
Data on Environmental Load from Operations (FY 2016)The data below shows the resource inputs and the
environmental load for Hitachi Group operations in fiscal 2016.
Total Input of Resources Total Output (Environmental Load)
Products shipped: 3,147 kt
*1 CO2e: CO2 equivalent.
Energy consumption (crude oil equivalent) 1.95 GL
Materials 3,193 kt
Water use 41.34 million m3
Total Energy Input
Raw Materials Input
Operations
Total Water Input
Electricity 81%
Metals 85%
Gas 15%
Fuel oil 4%
Plastics 5%
Other materials 10%
Tap water 19%
Groundwater, etc. 36%
Greenhouse gases 3,922 kt-CO2e*1
Waste and valuables generation 1,336 kt
Wastewater 38.77 million m3
Greenhouse Gas Emissions
Total Volume of Waste and Valuables
Total Volume of Water Effluents Discharged
CO2 emissions 98%
Recycle 76%
Public water 68%
Other GHG emissions 2%
Waste reduction 5%
Landfill 19%
Sewerage 23%
Underground infiltration, evaporation, etc. 9%
Water recycling
28.74 million m3
Industrial water, river water 45%
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Detailed Data on Resource Input and Environmental Load OutputTotal Input of Resources
Total resources input from Hitachi Group operations.
Total Energy Input Energy consumption: (crude oil equivalent) 1.95 GL
FY 2015 FY 2016
Renewable energy Electricity 3.9 GWh (39 TJ) 2.9 GWh (29 TJ)
Non-renewable energy Electricity 5,111 GWh (49.7 PJ) 5,897 GWh (57.3 PJ)
Gas Natural gas 0.11 Gm3 (4.9 PJ) 0.16 Gm3 (7.1 PJ)
LPG, LNG, etc. 56 kt (2.9 PJ) 61 kt (3.2 PJ)
Fuel oil (heavy oil, kerosene, etc.) 85 ML (3.1 PJ) 78 ML (2.9 PJ)
Raw Materials Input Materials: 3,193 kt
FY 2015 FY 2016
Materials Metals 1,638 kt 2,710 kt
New materials — 1,497 kt
Recycled materials, etc. — 1,213 kt
Plastics 149 kt 169 kt
New materials — 167 kt
Recycled materials, etc. — 2 kt
Other materials 347 kt 314 kt
New materials — 308 t
Recycled materials, etc. — 6 kt
Chemicals PRTR substances*1 handled 177 kt 189 kt
Ozone-depleting substances handled 11 t 208 t
Greenhouse gas substances handled 3,791 t 3,425 t
*1 PRTR substances: The 462 chemicals designated in Japan’s Pollutant Release and Transfer Register (PRTR) Law.
Note: “—” in the FY 2015 column indicates items for which data collection began in fiscal 2016.
Total Water Input Water use: 41.34 million m3
FY 2015 FY 2016
Water provided by municipality or other sources Tap water 5.65 million m3 7.77 million m3
Industrial water, river water 20.13 million m3 18.41 million m3
Groundwater 18.13 million m3 14.92 million m3
Rain water — 0.03 million m3
Recycled water (recycled from the wastewater of other organizations) — 0.21 million m3
Note: “—” in the FY 2015 column indicates items for which data collection began in fiscal 2016.
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Total Output of Environmental Load
Environmental load output from Hitachi Group operations.
Greenhouse Gas Emissions Greenhouse gases: 3,922 kt-CO2e
FY 2015 FY 2016
CO2 emissions 3,085 kt-CO2 3,845 kt-CO2
Other GHGs SF6 (sulfur hexafluoride) 56 kt-CO2e 56 kt-CO2e
PFCs (perfluorocarbons) 4 kt-CO2e 4 kt-CO2e
HFCs (hydrofluorocarbons) 16 kt-CO2e 16 kt-CO2e
N2O, NF3, CH4 1 kt-CO2e 1 kt-CO2e
Notes:
• The CO2 electrical power conversion factor uses the 2005 emission coefficients for individual countries published by the International Energy Agency (IEA) in the 2010 edition of CO2 Emissions from Fuel Combustion.
• The gas and fuel oil conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.
Total Volume of Waste and Valuables Waste and valuables generation: 1,336 kt Nonhazardous: 1,309 kt (hazardous: 27 kt)*1
FY 2015 FY 2016
Waste reduction 53 kt 68 kt (0.4)
Recycling Reuse 3 kt 1 kt (0.4)
Materials recycled 506 kt 1,001 kt (21.5)
Thermal recovery 13 kt 12 kt (2.4)
Landfill 43 kt 254 kt (2.0)
Chemicals PRTR substances discharged or transferred 4.4 kt 4.7 kt
SOx (sulfur oxides) 50 kNm3 101 kNm3*2
NOx (nitrogen oxides) 350 kNm3 488 kNm3
Ozone-depleting substances emitted (CFC-11, etc.) 1 t (0 t-ODP)*3 1 t (0 t-ODP)*3
*1 Waste materials that pose a threat to human health or the living environment. We dispose of all such materials in accordance with the laws and regulations of each country and region.
*2 Includes SOx generated by a materials company that became a consolidated member of the Hitachi Group in fiscal 2016.
*3 ODP (ozone depletion potential): A coefficient indicating the extent to which a chemical compound may cause ozone depletion relative to the depletion for CFC-11 (trichlorofluoromethane, ODP = 1.0). The emissions factor uses the ODP and global warming potential of
Japan’s Ministry of the Environment.
Total Volume of Water Effluents Discharged Water effluents discharged: 38.77 million m3
FY 2015 FY 2016
Public water 27.36 million m3 26.16 million m3
Sewerage 9.37 million m3 8.93 million m3
Underground infiltration, evaporation, etc. 6.58 million m3 3.68 million m3
Water quality BOD (biochemical oxygen demand) 433 t 446 t
COD (chemical oxygen demand) 732 t 731 t
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Environmental Load Through the Value Chain
Calculation of GHG Emissions Throughout the Value ChainWe calculate greenhouse gas (GHG) emissions throughout the
entire value chain to more effectively reduce these emissions.
As a substantial amount of emissions comes from use of the
products we sell, we make an ongoing effort to reduce emis-
sions by enhancing the efficiency and energy-saving features
of our products and services during their use.
Categories of GHG Emissions in the Value Chain
Extraction companies, etc.3 Fuel- and energy-related
activities not included in SCOPE 1 and 2
Direct GHG emissions by the company
Indirect emissions from electricity, heat, and steam supplied to and used by the company
Other indirect emissions not covered by SCOPE 1 and 2, such as emissions by other entities related to the company’s activities
Processors of intermediate products
10 Processing of sold products
Suppliers1 Purchased goods and
services
Product end users11 Use of sold products
Shipping companies9 Downstream transportation
and distribution
Construction companies, etc.
2 Capital goods
Direct emissions (SCOPE 1)
Waste treatment companies12 End-of-life treatment of
sold products
Users of leased assets13 Downstream leased assets
Franchise members14 Franchises
Investment destinations15 Investments
Waste treatment companies5 Waste generated in
operations
SCOPE 1
Leasing companies8 Upstream leased assets
SCOPE 2
Transportation companies, etc.
6 Business travel7 Employee commuting
SCOPE 3: Upstream SCOPE 3: Downstream
Shipping companies4 Upstream transportation
and distribution
Power plants, etc.Indirect emissions due to generation of purchased energy (SCOPE 2)
Electricity and heating
Waste materials
In-house
Facilities and equipment
In-house: Within the scope of the company’s organizational boundaries. In principle, the scope of all business activities of the company itself and activities within or controlled by
its consolidated subsidiaries.
Upstream: In principle, activities related to purchased products and services.
Downstream: In principle, activities related to sold products and services.
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GHG Emissions Throughout the Hitachi Value Chain
Category Description Calculation Results (Mt-CO2e)
SCOPE 1*1
Direct emissions Direct emissions from in-house fuel use and industrial processes 1.36 (1.1%)
SCOPE 2*2
Energy-related indirect emissions Indirect emissions from production of electricity and heat purchased by the company 2.55 (2.1%)
SCOPE 3: Upstream (other indirect emissions)
1 Purchased goods and services Emissions from the resource extraction stage to the manufacturing stage, including raw materials, parts, supplied products, and sales 6.92 (5.5%)
2 Capital goods Emissions generated in the construction, manufacture, and shipping of the company’s own capital goods, such as equipment, devices, buildings, facilities, and vehicles 1.09 (0.9%)
3 Fuel- and energy-related activities not included in SCOPE 1 and 2 Emissions from procuring fuel necessary for electricity and other energy production, including resource extraction, production, and shipping 0.23 (0.2%)
4 Upstream transportation and distribution Emissions from distribution of raw materials, parts, supplied products, and sales prior to delivery of materials to the company, as well as other distribution activities of products for which the company bears the expense
0.10 (0.1%)
5 Waste generated in operations Emissions from transportation, disposal, and treatment of waste generated in the company’s operations 0.11 (0.1%)
6 Business travel Emissions generated from fuel and electric power used by employees for business travel 0.07 (0.1%)
7 Employee commuting Emissions generated from fuel and electric power used in employee commuting 0.06 (0.0%)
8 Upstream leased assets Emissions from the operation of assets leased by the company, excluding those counted in SCOPE 1 and 2 Included in SCOPE 1 and 2
SCOPE 3: Downstream (other indirect emissions)
9 Downstream transportation and distribution Emissions from transportation, storage, loading and unloading, and retail sales of products 0.01 (0.0%)
10 Processing of sold products Emissions by downstream companies during processing of intermediate products N/A*3
11 Use of sold products*4 Emissions from use of products by end users, such as consumers and businesses 110.94 (89.5%)
12 End-of-life treatment of sold products*4 Emissions from transportation, waste disposal, and treatment of products by end users, such as consumers and businesses 0.31 (0.3%)
13 Downstream leased assets Emissions from operating assets owned by the reporting company as lessor and leased to other entities 0.03 (0.0%)
14 Franchises Emissions by franchises under SCOPE 1 and 2 N/A
15 Investments Emissions related to management of investments 0.10 (0.1%)
Total 123.88 (100%)
Note: Figures in parentheses are percentages of GHGs emitted throughout the value chain.
*1 Includes SF6, PFC, HFC, N2O, NF3, and CH4. The gas and fuel conversion factor is based on the list of emissions and calculation methods published by Japan’s Ministry of the Environment.
*2 The CO2 electrical power conversion factor used to calculate emissions uses the 2005 emission coefficients for individual countries published by the International Energy Agency (IEA) in the 2010 edition of CO2 Emissions from Fuel Combustion.
*3 Cannot be determined due to insufficient information on processing.
*4 CO2 emissions per unit is based on the Inventory Database for Environmental Analysis (IDEA), developed by the National Institute of Advanced Industrial Science and Technology (AIST) and the Japan Environmental Management Association for Industry (JEMAI).
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Environmental Accounting
Overview of Environmental AccountingHitachi has adopted and made public a set of environmental
accounting procedures conforming to the Japanese Ministry of
the Environment’s Environmental Accounting Guidelines 2005.
We have used the results of these procedures to raise the
efficiency of our environmental investments and activities, more
effectively allocating management resources to our ongoing
environmental efforts.
Achievements
Environmental Investments, Environmental Protection Costs, and Economic Effects
Environmental Investments Environmental Protection Costs Environmental Protection Effects (Economic Effects)
Fiscal 2016 Environmental Investments by Countermeasure
(billions of yen)
(FY)0
50
25
100
75
150
125
2012 2013 2014 2015 2016
4.5 7.515.2 14.1
5.3 5.8
127.9 123.3112.0 107.6
29.9 25.8
5.112.7
105.8
Global Warming Prevention 52%
Other 23%
Pollution Prevention 16%
Waste Reduction 9%
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Environmental Investments(billions of yen)
Description FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Total investment Investment in energy-saving equipment and equipment that directly reduces environmental load 5.28 5.81 4.46 7.50 5.12
Environmental Protection Costs(billions of yen)
Item Description FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Expenses
Business area Maintenance costs for equipment with low environmental load, depreciation, etc.*1 31.84 38.63 26.90 24.22 19.19
Upstream/downstream Green procurement expenses, recovery and recycling of products and packaging, recycling expenses 1.38 1.27 1.09 0.97 0.63
Administration Labor costs for environmental management, implementation and maintenance of environmental management system 7.67 6.77 6.47 5.97 5.12
Research and development R&D to reduce environmental burden caused by products and production processes, product design expenses 84.71 75.62 76.12 75.71 79.64
Social activities Planting, beautification, and other environmental improvement expenses 0.41 0.51 0.36 0.45 1.21
Environmental remediation Environmental mitigation costs, contributions, and charges 1.90 0.53 1.03 0.27 0.22
Total 127.91 123.33 111.97 107.59 105.84
*1 Equipment depreciation costs are calculated using the straight-line method over five years.
Environmental Protection Effects
Economic Effects*1
(billions of yen)
Item Major FY 2016 Activities FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Net income effects Recovering value from waste by sorting and recycling 17.85 15.98 7.54 7.27 4.96
Reduced expenses effects Installing high-efficiency equipment (lighting, power supply) 12.07 9.82 7.65 6.78 7.77
Total 29.92 25.80 15.19 14.05 12.72
*1 Economic effects include:
• Net income effects: Benefits with real incomes, including incomes from the sale of resalable materials and incomes from environmental technology patents.
• Reduced expenses effects: Reduction in electricity, waste treatment, and other expenses through environmental load reduction activities.
Physical Effects*1
(million kWh)
Item Major FY 2016 Activities FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Reduction in energy used during production Installing LED lighting, upgrading air-conditioning equipment, etc. 107 70 68 59 51
*1 Equipment depreciation costs are calculated using the straight-line method over five years.
Environmental LiabilityWe have appropriated 10.05 billion yen in expenses for the disposal of PCB-containing waste and 1.57 billion yen to clean up contaminated soil as the amounts that we can reasonably project as of
March 2017 as future environmental liabilities.
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